Debt rises for hotels, restaurants and catering firms in 2020

Łukasz Gągulski/PAP

The debt of hotels, restaurants and catering firms increased by one third in 2020 compared to the previous year and now stands at around PLN 280 million (EUR 61.8 million).

According to the National Debt Register (KRD) - Office of Economic Information, the total value of liabilities during just the pandemic period increased by over PLN 58.4 million (EUR 12.9 mln).

Hotel and hospitality enterprises must repay banks over PLN 102 million (EUR 22.5 million), and PLN 73 million (EUR 16.1 million) to debt collection companies and securitisation funds.

Food industry suppliers, who are owed PLN 15.5 million (EUR 3.4 million), as well as leasing companies, are also waiting for repayments. Close to 70 percent of the firms in debt are also sole proprietorships.

KRD analysts also noted that forecasts by representatives of the Chamber of Commerce of the Polish Hotel Industry made in the middle of last year said that 20 percent of hotels, due to the restrictions, would possibly not survive to the end of the year.

They also pointed out that so far hotels have not yet made up losses incurred last year.